European countries demand explanations from the IMF on the decision to resume the Fund’s mission in Russia
13 September 2024 14:44
European states intend to ask International Monetary Fund chief Kristalina Georgieva about the decision to resume economic contacts with Russia, the first such step since Russia’s invasion of Ukraine. Representatives of the Baltic states and Northern Europe plan to raise this issue during a meeting with Georgieva this week, reports "Komersant Ukrainian" reports citing Bloomberg.
At a meeting of EU representatives on Wednesday, France, Belgium, Poland and several Baltic and Nordic countries expressed surprise at the IMF’s decision in early September to resume annual economic reviews of Russia. The Lithuanian representative announced that he plans to discuss the issue with Georgieva at a working lunch on Friday in Budapest with European finance ministers.
This move has raised concerns that it appears to be a legitimisation of the racist regime against the backdrop of EU and US efforts to isolate Russia. Lithuanian representatives noted that this mission, the first since the invasion of Ukraine, could be used by Russia as evidence that international isolation is easing.
Lithuania also plans to send a letter to Georgieva, which is expected to be signed by several EU members. It will express concern about the potential normalisation of relations with Moscow.
During the discussion, French representatives stressed that the visit should not help legitimise Russia’s sanctions circumvention.
Follow us on Telegram: the main news in a nutshell
Earlier, the IMF announced that it would resume its reviews of the Russian economy. The Fund explained its decision by the fact that the economic situation in Russia has become more stable compared to the previous period. And the economic review, which is conducted under Article IV of the IMF’s Articles of Agreement, is a “mutual obligation” of the Fund and its members, and, according to Alfred Kammer, head of the IMF’s European Department, the time has come when the Fund can provide an economic analysis.
The United States, however, does not object to the annual review of Russia’s economy, although Treasury Secretary Janet Yellen has said she opposes providing Moscow with financial support from the IMF.
Discussions between the IMF and Russian officials are expected to begin virtually on 16 September, followed by a delegation from the Fund visiting Russia for face-to-face meetings on 1 October.
Strangely enough, the Ukrainian information space has also found defenders of this decision from the IMF (albeit affiliated with it). As Vladislav Rashkovan, the IMF’s deputy executive director for Ukraine, wrote on Facebook, the planned IMF mission to Russia is not a betrayal of Ukraine. On the contrary, this mission will provide us with much-needed information about the Russian economy, which is currently unavailable.
“…now it will be a surveillance mission, in which the IMF will analyse the Russian economy, and the Russian authorities will have to provide all the necessary economic and statistical reports on their economy. I would like to remind you that at present there is no such analysis with trustworthy data… The Fund can only guess what is happening in their economy and non-aggregated reporting, receiving data only by indirect methods. We and all our Western partners are guessing. But we would still like to know. For example, the Article IV report on Ukraine is available on the IMF website. That is, Russia knows about our economy, but we and our partners do not know about their economy for sure,”
– rashkovan wrote.
Follow us on Telegram: the main news in a nutshell
